An LCIA Arbitration Clause in a contract contains the parties’ agreement that their dispute will be resolved by an arbitral tribunal and that the arbitration proceedings will be governed by the procedural rules in the LCIA Arbitration Rules, in addition to any mandatory rules at the seat of arbitration.
The inclusion in the contract of an LCIA Arbitration Clause also implies that the London Court of International Arbitration and the Registrar will administer the arbitration proceedings and assist the parties and the arbitral tribunal, e.g., confirming, appointing and replacing arbitrators (Articles 5, 7, 8, 9A) deciding on any challenges made against the arbitrators (Articles 9C, 10, 11) and overseeing emergency proceedings before the start of the arbitration (Article 9B).
A well-drafted arbitration clause is a guarantee that the parties spend less time and avoid unnecessary costs should a dispute arise. The parties wishing their dispute to be resolved in accordance with the LCIA Arbitration Rules may include in the contract the following models of LCIA arbitration clauses and LCIA mediation clauses as recommended by the London Court of International Arbitration.
Model LCIA Arbitration Clause for Future Disputes
“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause.
The number of arbitrators shall be [one/three].
The seat, or legal place, of arbitration shall be [City].
The language to be used in the arbitral proceedings shall be [ ].
The governing law of the contract shall be the substantive law of [ ].”
Model LCIA Arbitration Clause for Existing Disputes
In case of a dispute regarding a contract that does not provide for arbitration, the parties may find an agreement to solve their dispute by arbitration instead of State courts.
“A dispute having arisen between the parties concerning [ ], the parties hereby agree that the dispute shall be referred to and finally resolved by arbitration under the LCIA Rules.
The number of arbitrators shall be [one/three].
The seat, or legal place, of arbitration shall be [City].
The language to be used in the arbitral proceedings shall be [ ].
The governing law of the contract [is/shall be] the substantive law of [ ].”
LCIA Mediation and Arbitration Clause
A dispute resolution clause that combines mediation and arbitration may be appropriate for parties that wish to have more structured discussions in case of a dispute and to obtain guidance from experienced mediators.
“In the event of a dispute arising out of or relating to this contract, including any question regarding its existence, validity or termination, the parties shall first seek settlement of that dispute by mediation in accordance with the LCIA Mediation Rules, which Rules are deemed to be incorporated by reference into this clause.
If the dispute is not settled by mediation within […………] days of the commencement of the mediation, or such further period as the parties shall agree in writing, the dispute shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause.
The language to be used in the mediation and in the arbitration shall be […………].
The governing law of the contract shall be the substantive law of […………].
In any arbitration commenced pursuant to this clause,
(i) the number of arbitrators shall be [one/three]; and
(ii) the seat, or legal place, of arbitration shall be [City].”
LCIA Mediation Only
The parties may agree that any dispute will be settled by mediation. In the absence of an arbitration clause, the unresolved dispute will be finally brought before the competent State courts.
“In the event of a dispute arising out of or relating to this contract, including any question regarding its existence, validity or termination, the parties shall seek settlement of that dispute by mediation in accordance with the LCIA Mediation Rules, which Rules are deemed to be incorporated by reference into this clause.”
These are the model LCIA arbitration and mediation clauses that are perfectly suited to be used by the parties as they are. The parties may also wish to have a tailor-made mediation and arbitration clause in which case the advice of an experienced counsel in international arbitration is recommended.
The parties may also desire to have their arbitration governed by different arbitration rules and administered by different arbitration centres with a regional focus or a more international one, e.g., the ICC – International Chamber of Commerce.
